The lease of Darwin Port by Chinese-owned Landbridge Group is under renewed scrutiny following a financial audit that raised concerns about the company’s viability. 

The 99-year lease, signed in 2015 for $506 million, has been a source of national security debate and is now being examined due to financial instability at Landbridge.  

A recent PricewaterhouseCoopers audit, included in Landbridge Infrastructure Australia’s annual report, highlighted a loss of over $34 million at Darwin Port for the 2023-24 financial year. 

“There is a material uncertainty that may cast significant doubt on the Landbridge Group Co’s ability to continue as a going concern,” the report said. 

Still, Landbridge’s Australian representative, Terry O’Connor, has expressed confidence in retaining the port despite the financial strain. 

“The word from China, from [Landbridge owner] Mr Ye [Cheng], is that Darwin Port is a valuable asset… not considered for sale to meet debt,” O’Connor told reporters.  

The NT Government has acknowledged the financial concerns and confirmed it is “reviewing our rights” under the lease agreement. 

NT Treasurer Bill Yan recently met with federal Infrastructure Minister Catherine King in Canberra to discuss the situation. 

“Our immediate focus is to ensure the port remains operational while its longer-term future is confirmed,” Yan stated.  

The federal government, long critical of the original lease agreement, is also monitoring the developments. 

The Darwin Port lease has been contentious since its inception, with critics citing geopolitical risks. 

A Commonwealth-commissioned review last year recommended against terminating the lease, citing sufficient regulatory measures to manage security concerns. 

Landbridge maintains its commitment to fulfilling the lease terms as its parent company pursues a financial restructuring plan. 

CareerSpot This email address is being protected from spambots. You need JavaScript enabled to view it.